Your Fiduciary Duties

August 22, 2012 at 8:31 pm Leave a comment

The EBSA has a resource about liabilities as a fiduciary for retirement plans on their website at http://www.dol.gov/elaws/ebsa/fiduciary/q4c.htm.  For example, it mentions obtaining a fidelity bond for certain retirement plans.  It is noteworthy that the article emphasizes the importance of documenting the review process and rationale for decisions.  I feel this is particularly important when a Plan Sponsor is reviewing service providers.  For example, many Plan Sponsors look for only the cheapest service provider and do not take into account whether the personnel have the necessary credentials to work on the plan.  It is acceptable to choose a firm the provides a higher level of service and quality even if they are not the cheapest provider.  The important thing is that the reasons are documented and that the decision is made in the best interest of plan participants.

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Entry filed under: Ethics, Retirement. Tags: , , , , , , , , , , , , , , , .

When You Resign as a Fiduciary Fiduciaries’ Duties Regarding Service Providers

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Christine Gurney

A pension professional who shares her thoughts and ideas about the pension world for industry members and anyone else interested.

@ChristineGurney

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